UPDATE: Q3 Consumer confidence drops to -26.3%

Consumer sentiment weakened in the third quarter as families expressed concern over food and basic commodity prices, political controversies, higher household expenses, and uncertainty about employment and income prospects, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

Results of the Consumer Expectations Survey (CES) conducted by the BSP showed overall consumer sentiment declined by 9 percentage points to -26.3 percent from -17.3 percent recorded for the second quarter. The survey was conducted from July 1 to July 12, and collected responses from 5,948 households nationwide.

The score is the difference between the number of households responding affirmatively to given indicators and the number of households responding negatively; a negative percentage indicates pessimists outnumber optimists.

Q4 outlook dims; brighter next year
The CES also indicated consumer sentiment was more pessimistic for the fourth quarter, with the outlook dimming from a neutral 0 percent to -1 percent.

The BSP reported, however, that despite declining consumer sentiment for this quarter and next, consumer expectations for the next 12 months remained broadly favorable, though diminishing slightly because of a negative outlook toward the country’s economy among lower-income households.

Expectations for more jobs, improvement in the peace and order situation, and more investors in the country otherwise kept consumer sentiment for the year ahead in positive territory.

The CES is conducted quarterly by the BSP using a sample of households drawn from the Philippine Statistics Authority-National Statistics Office (PSA-NSO) Master List of Households, and is divided approximately equally between households inside and outside the National Capital Region. The survey asks households about their expectations about economic indicators for the current and future quarters, as well as questions about spending habits, planned expenditures, and savings.